1/16/2013 Update:

Tuesday’s  Crude Pit Session: 

High: 94.26     

Low: 93.22

Settle: 93.29

Looking ahead to today’s crude pit session:

Yesterdays API report showed a 46,000 barrel build in crude inventories, a -568K barrel draw in Distillates and a 2.7 million barrel build in Gasoline.  Today’s 1030am DOE report is forecasting a 2.0 million barrel build in crude inventories.   Using last night’s API numbers as a leading indicator, we may see a smaller than expected build in DOE numbers.  We also need to keep a close eye on RBOB and HO to see how they react to today’s inventory numbers as these markets often front run crude prices.  Pit Traders are still looking at Fridays pit session lows of 92.65 as the top our short term support zone as prices rallied off this level three times last week creating a triple bottom.  They are also looking at short term resistance at last week’s highs of 94.70.   A break above or below these levels  could easily  push prices up to the 97-98 handle or down to the 90-87 handle as options suggest.  As roll to the March front month continues we will be keeping a close eye on the options pits to see how the big players are positioning themselves in March contract. 

Tune in this morning to hear a full analysis and pit commentary. 

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Levels: 

Support: 93.22, 93.06, 92.65, 92.53, 92.00, 91.50, 91.31

Resistance:  93.29, 93.62, 93.75, 94.06, 94.26, 94.44, 94.70

Tuesday’s Natural Gas Pit Session: 

High: 3.464

Low: 3.347

Close / Settle: 3.456

Today’s Natural Gas pit session:

We watched Natural Gas catch a bid up late in the session on news of refinery fire in Texas making and settling close new highs at 3.464.  The latest NOAA six to fourteen day forecasts are expecting below normal temperatures across most of the US.  That said, we may continue to see the Natural Gas Traders continue to push prices to the 3.500-3.600 level and then pull back as options suggest.   We will need to keep a close eye on Thursday’s upcoming inventory report as a larger than expected draw in inventory combined with cold weather forecasts could continue to push prices higher

Tune in this morning to hear a full analysis and pit commentary.

Listen Live for free until Jan 24^th!

www.tradersaudio.com  User ID: crude Password: squawk 

Levels: 

Support:  3.411, 3.358, 3.347, 3.358, 3.328, 3.275, 3.139

Resistance:  3.464, 3.494, 3.547, 3.600, 3.683